Personal loans are primarily meant for salaried personnel and can be availed by anyone working as a permanent employee.

I am a professional working with a reputed company as a consultant (temporary employment). Am I eligible for a personal loan?

No, only persons who are on the permanent rolls of a company are eligible for a personal loan. However, you may be eligible for an unsecured business loan. Please visit the business loans section for more details.

I have joined a company on internship and I get paid a monthly stipend for the same. Can I avail a personal loan?

No, most banks do not provide personal loans for people working as interns. However, upon confirmation of employment and the credit of your first month salary, banks may consider providing you a personal loan.

I am a Non Resident Indian (NRI). Can I avail a personal loan?

Yes, there are banks that provide personal loans for NRIs. Please refer to the NRI personal loans page for more information on the same.

Can I get a loan based on the rental income I get from my house?

Yes, some banks allow loans against rental income.

I had applied for a loan in the past and did not avail it. Would I be able to get a loan now?

Yes, independent of your past applications, if you satisfy the other eligibility criteria, you would be able to get a personal loan.

My personal loan application was declined in the past. Can I apply again?

Depending on the reason for rejection, the case can be relooked at subject to the terms and conditions of the lender.

I already have a personal loan, can I avail another one from the same bank?

Yes, most banks allow you to do the same. These are usually known as top up loans, the parameters for which vary from bank to bank.

Is there any age limit for availing a personal loan?

Most banks have a minimum age limit of 21 years to allow a personal loan. The maximum age limit varies from bank to bank and could be 58 or 60 years or the age of retirement depending on the bank. The maximum age limit pertains to the planned time of maturity of the loan.

I am a bachelor residing with friends. Would I be able to get a personal loan?

This varies from bank to bank, but there are quite a few banks who allow bachelors to avail personal loans.

I have never taken any loans or credit cards in the past. Would I be able to get a personal loan?

Though several banks look for a credit history before approving a loan, there are quite a few banks which allow you to take a personal loan without the same.

How does adding a co-applicant to my personal loan application help?

In case the eligibility of the primary applicant does not completely satisfy the bank norms, some of the banks provide for a co-applicant to be attached to enhance the loan application.

Do I need a guarantor to avail a personal loan?

Most banks do not require a guarantor for a personal loan. There may be some rare exceptions for this.

Do I need to provide any collateral to avail a personal loan?

No, personal loans are totally unsecured and do not require any collateral to be attached.

What can I use a personal loan for?

Personal loans are not tied to any purpose and can be used for anything you would want to do. Some of the common uses of personal loan include purchase of land, margin money for housing loans, wedding expenses, purchase of white goods, laptops, holidays, etc

What are the prevailing interest rates on a personal loan?

The interest rate on a personal loan varies depending on the bank applied for. It also depends on the profile of the customer and the tenure for which the loan is applied. Hence the rate offered need not remain the same for all loans provided by a single bank. For more details on rates prevailing in the markets now, please refer to the comparison table.

There are several terms like 'fixed/floating', 'flat/diminishing' making rounds in the market in relation to the interest rates. What do these terms mean?

Normally the rates quoted on personal loans are monthly diminishing in nature, wherein the interest to be paid is calculated based on the outstanding principal for the month.

And usually personal loans come with fixed rate schemes only. Floating rate schemes, where the rate of interest changes based on the market conditions are more common in housing loans.

What are the charges levied on a personal loan?

Processing fee and the interest are the primary charges levied on a personal loan. Along with these, there may also be charges for availing a credit shield which most banks offer and the service tax. In case of delays in the loan repayment or part-payment/pre-closure of the loan, there may be other charges as well. For more details about some of the common charges, please refer to the comparison table.

What is credit shield/loan insurance?

Credit shield insures the loan applicant against the outstanding principal up to the completion of the loan. This prevents the loan repayment liability being passed on to the family of the borrower in case anything unfortunate happens to the borrower.

Are there any other charges associated with the loan?

Under normal circumstances, with most banks, there may not be any other charges. This can be cross-checked with the bank in advance and also in the statement of charges which all banks usually forward to the applicant on disbursal. This statement carries the details of all charges deducted.

What are the minimum and maximum amounts which can be availed as a personal loan?

The loan amount varies from institution to institution and can vary from a minimum of Rs. 25,000 in some cases to a maximum that exceeds Rs. 15 lakhs.

What would be the maximum loan amount which I would be able to get?

Maximum loan amount is calculated based on the net income of the applicant after deduction of all fixed obligations. Usually 40% to 60% of this net income is considered as disposable income, which can be utilized for EMI payment to service the loans. This maximum EMI for the loan chosen by you can be as high as this disposable income. Please use the EMI calculator to calculate the approximate maximum loan amount you are eligible for or talk to a RupeeZone expert to get the exact eligibility.

What are the tenure options?

The tenure normally ranges from a minimum of 1 year to a maximum of 7 years depending on the bank. There may be exceptions to the same.

What are the documents required to avail a personal loan?

Documents for KYC norms

Identity proof

Address proof

Date of birth proof

Signature proof

Latest pay-slips (last one to three months)

Latest 3-6 months salary credit bank statement

There may be more documents needed on a case-to-case basis depending on the bank and the scheme opted for.

Is a PAN card mandatory to get a personal loan?

In most cases, a PAN card is mandatory to avail a personal loan. Some lenders do not have that requirement in case of loan amounts less than Rs. 50,000.

What is the time taken for processing a personal loan?

This varies, depending on the bank dealt with and the availability of required documents with the customer and can vary from a minimum of 48 hrs to a maximum of even 2 weeks or more.

Is there any difference between a personal loan and an overdraft?

Personal loans and overdrafts differ on several aspects. The primary difference is that a personal loan has a fixed EMI commitment which consists of a principal and an interest component, whereas in the case of an overdraft, there is no EMI and depending on the scheme only the monthly interest may have to be paid periodically.

Why do banks ask for cheques when the repayment is carried out through ECS? How many such cheques are needed?

Banks insist on cheques to be collected from borrowers for security purposes. These cheques are utilized in case there is a problem with clearance for ECS.

The number of cheques required varies depending on the financial institution and ranges from 3 to 10, depending on the tenor of the loan and other parameters. Apart from these, a cancelled cheque may also be needed to authorize ECS payments.

Can I pre-close a loan earlier than planned? Are there any penalties applicable for the same?

Yes, you can pre-close a personal loan after a minimum of 6 EMI payments with most banks. Closure charges vary from bank to bank and in some cases vary based on the time of closure. To get the exact details on the same, please refer to the comparison table.

Is it possible to make part-payments against a personal loan?

Part payments are normally not allowed in case of personal loans though there may be some banks which allow the same.

How will I receive the loan amount?

It varies from bank to bank and it may be through a NEFT transfer directly to your account, or a demand draft or banker's cheque delivered to you physically. In some cases you may have to collect the demand draft or banker's cheque from Bank's branch in person.

What is the net amount that would be credited to my account?

The total loan amount approved by the bank and agreed upon by the customer, less the processing fee, service tax where applicable and insurance if opted for, would be the net amount that would be credited to your account. In case of top up loans, the amount credited would be the amount calculated above less the principal outstanding on the previous loan.

Will I receive any confirmation from the bank on my loan?

Normally banks send a welcome kit on disbursal of the loan. The kit usually contains the repayment schedule showing the EMI amount, EMI payment date, ROI, tenor and the loan amount. In some cases, the kit also contains copies of the signed loan agreements.

What will be the mode of repayment for my personal loan?

In case the loan and the account from which the loan would be repaid are with the same bank, then a standing instruction would be taken by the bank. In case these are at different banks, then the payments can be made either through ECS or through post dated cheques (PDCs).

Can I make my loan repayment from any of my bank accounts?

No, in case of personal loans, the loan repayment needs to be attached only to the salary account of the customer.

When would I have to start repaying my loan?

With most lenders, for loans availed before the 20th of a particular month, the EMI is payable from the following month. In case of loans availed between the 20th and the last day of a month, the EMI is payable from the month after the next month.

On which day of the month would my EMI get debited from my account?

This varies from bank to bank, but is usually done within the first 7 days of the month.

What happens if I shift my job during the repayment period of the loan?

Personal loans are not tied to the employer and hence it doesn't have any impact on the loan, if the salary account would still be maintained to service the loan.

What happens if I change/ close my salary account?

You should intimate the bank immediately and apply for a swap of cheques/ECS submitted while availing the loan to ensure timely repayment. An alternate option would be to ensure the old account is adequately funded to service the loan

How do I change the repayment account?

You would have to contact the bank for the same. The banks would normally do it for a nominal charge, on providing the necessary documents.

What happens if an ECS payment against my loan bounces?

In case of a bounce, most banks charge a penalty. And in most cases, it gets presented for a second clearance in the same account. In any case, it would be prudent on your part to get in touch with the lender to discuss the possible course of action to ensure a clean credit history.

What do I do if I require more funds after disbursal of my loan?

Depending on the lender, you may be able to get a top-up on the existing loan, subject to their terms and conditions. You can also go to other banks for your new credit requirement.

Is it possible to transfer a personal loan from one bank to another? Are there any charges applicable while doing the same?

Yes, it is possible to transfer a personal loan. But pre-closure charges might be applicable while doing the same.

What is the difference between a repayment schedule and a track record?

Repayment schedule contains information about the repayment plan for the complete tenure of the loan, whereas the track record is specific to the repayment pattern on the loan and will consist of data pertaining to actual repayments made till date.

What is the difference between taking the loan from Rupeezone and others?

Since RupeeZone has tie-ups with most of the leading banks, RupeeZone has the unique advantage of providing you with multiple options in a single phone call and help you decide on which bank suits you the most. Our workforce of more than 500 trained personnel makes us capable of providing service at your desk or at your home. With RupeeZone you don't have to move an inch to get the loan that best suits your need!

View Interest Rates & Calculate your EMI

Personal Loan Eligibility

In order to find out the various banks you can avail a personal loan from, you will have to fill in the following details in the personal loan eligibility calculator:

Filling these details will help us determine your eligibility, so that you may see for yourself the various banks across which you can avail a personal loan at the best interest rates.

The personal details which you will have to submit are:

Whether you are salaried or self-employed?

It is important you tell us about this because the interest rates and other charges as well as the documentation vary for salaried as well as self-employed personnel.

Also, the various eligibility criteria are not the same for salaried and self-employed. For example, if you are self-employed then your business should have had increasing revenues over the years and also a minimum of 3 year stability. Whereas, if you are salaried you should have had a work experience of a minimum of 6 months to one year.

Your Age

While availing a personal loan, you should be at least 21 years of age and at the time of loan maturity should not exceed 58 years. This is required because a person's age is used to determine the loan repayment period.

Note: Your retirement age is what will be considered, i.e. if it is less than 58 years, for instance, if your retirement age is at 50, and you are availing a loan when you are 48 years old, and then you will be eligible for a loan of no more than 2 years tenure.

The city you reside in

Choose the city you live in, so that our team and our bank partners there can get in touch with you.

In certain situations, you may live in the outskirts of a city, it is important you tell us this beforehand so that the necessary permissions can be sought with a particular bank in order to go ahead with your loan processing.

The nature of your residence

Whether you live in your own house, a rented one or a hostel or a paying guest accommodation, will help the banks determine your stability i.e. whether you have been able to keep up with your living expenses.

Note: If you are living in your own house or a parent owned house, it denotes a better chance for your application to be approved. If you are in a bachelor's accommodation, there are multiple parameters banks will look at, to be able to go ahead with the processing.

The duration of your current residence

Most banks look for a minimum stability of at least between 6 months to 1 year.

Note:The longer you have stayed at your residence; the better is your stability. If you have been living in a bachelor's accommodation then a stability of at least 1 year is expected in order to better your chances of approval.

The necessary professional details you need to enter include:

Your monthly net salary

This is the most important aspect among others, mainly because it directly impacts the maximum emi payable by you & interest rate.

The disposable income towards paying your emi would be: 60% of your net monthly income also known as Fixed Obligations to Income Ratio (FOIR).

Here, 60% of 45,000 = Rs.27,000. So irrespective of the loan amount you opt your EMI should not exceed 27,000.

However, if you have any ongoing obligations such as another loan for which you are paying an emi of Rs 10,000. Then your emi considered toward paying your loan will be 17,000.

Here's how it's done:

Income: Rs. 45, 000

Portion of income towards paying emi: 60% of 45, 000 = Rs. 27, 000

Current obligation: Rs. 10, 000

Available income for paying new emi: Rs. 17, 000

For instance, bank A will offer an interest rate of 14-17% to those who have incomes more than 75,000 whereas the same bank will offer personal loan at an interest rate of 17 and above to those earning below 75,000. This also depends on the company category your company is listed in that bank.

Name of the organization you work for.

Banks have their own list and categories of various companies, the interest rates as well as loan amount borrowable will vary depending on the company you work in.

Based on where you work and how much you earn your loan eligibility is determined; let us understand this better:

For example,

Let's say you and your friend are earning the same income but are working in different companies. The interest rates offered to both of you will not be the same because of the company category listing in the banks.

Type of industry you work in

This is also important for banks to help determine your loan eligibility because, the criteria for IT industry is not the same as BPO industry or a government organization for that matter.

The duration of your experience with your current employer

The longer you have worked in a company, is an indication of your financial stability.

Total work experience

Normally, a work experience of 2 years and above is ideal. This includes your work experience from the time you started working.

Note:The more your work experience, the better will be your chances of approval.

Whether you had used or are using credit cards or details of any other loans you may have had

Having a previous history of loans or credit cards is an advantage as it helps lending institutions to understand your repaying capacity in a better light as there will be a record of it in your credit report. The same will also reflect in your cibil score.

Tip #1: If you happen to have a large credit card outstanding, you can very well convert the same in to a personal loan. This will help you reduce your interest payable as well as put a stop to your mounting debt.

Tip #2: If you have an existing relationship with a bank, i.e. if you have had any previous loans or credit cards with them, then you may be able to apply for a loan easily.

The other vital aspect that determines your eligibility and loan approval is the CIBIL Score. Don't know what it means? Don't worry.

The maximum score is 900, and the ideal, expected score is 750 and above.

Tip:Never default on paying your monthly installments or credit card bills, as this will result in your score getting lowered.

How to get cibil report?

On receiving the application of your loan, the bank will request for the credit report of the customer in question. Depending on the report received, the bank will try to assess your loan repaying capacity.

Please note, CIBIL does not classify your reports as positive or negative, the reports are nothing more than documentation of your past loans as well as credit card records.

Always keep in mind that, it is at the discretion of the bank to make the final decision on whether or not your loan can be approved.

You could also apply for your cibil report simply for the purpose of reading and understanding it.

Your desired loan amount and tenure

The loan amount you require and preferred loan repayment period.

Here are some ways you can borrow the maximum amount and avail a reduced interest rate as well.

If your income is say Rs. 35, 000; for 2 years you will be eligible for 5,04,000 but with the same income for a tenure of 5 years you will be able to borrow 12,60,000. Your interest rate will also vary depending on the tenure you choose.

If for example, you avail 5 lakh, then your interest rate might be around 15 to 16% whereas if you are availing 10 lakhs or more, then your interest rate will be around 13 or 14%.

Note: To be able to avail your desired loan amount you need to fulfill all the eligibility criteria put forth by the banks.

As you keep filling the relevant details, you will be able to find the number of banks you can avail a personal loan from and also the maximum loan you can avail, based on the details you have entered. This will give you an idea as to your options for availing personal loans.

In the next step, you will be able to find out:

Best interest rates and corresponding personal loan offers from leading banks, depending on your eligibility. You will also be able to find out the personal loan emi you will have to pay

Personal Loan Process ? A Quick Overview

Irrespective of the type of loan you have applied for, there are certain processes that are common to all loan applications.